| USA. Exide announces results for fiscal year 2004 |
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| Wednesday, 30 June 2004 | |
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Press release: Exide Technologies a global leader in stored electrical energy solutions, announced results for fiscal year 2004 which ended March 31, 2004. As previously announced, the Company's Plan of Reorganization became effective on May 5, 2004 and the Company emerged from bankruptcy. All figures are based on pre-emergence accounting and going forward the Company's financial results will be based on fresh start accounting. The consolidated net loss for fiscal 2004 was $114.1 million, or $4.17 per diluted share as compared to fiscal 2003's net loss of $140.9 million or $5.14 per diluted share. Included in fiscal 2004 consolidated net loss were reorganization items in connection with the bankruptcy of $67.0 million, restructuring costs of $52.7 million and a charge of $15.6 million for the cumulative effect of a change in accounting principle. The change in accounting principle in fiscal 2004 resulted from the April 1, 2003 adoption of Statement of Financial Accounting Standards No. 143, which outlines financial accounting and reporting requirements for obligations associated with the retirement of tangible long-lived assets and the associated retirement costs. Net sales were $2.5 billion for fiscal 2004, up from $2.36 billion in fiscal 2003. Although sales volumes were lower in all three of the Company's business segments during fiscal 2004, currency positively impacted net sales for fiscal 2004 by approximately $229 million. "During fiscal 2004, Exide continued execution of our operational restructuring initiatives, primarily in Europe, while meeting the needs of our customers despite a delay in our exit from Chapter 11 in North America. With our emergence from Chapter 11 in May 2004, we are now able to focus our total efforts on meeting the challenges we face in today's market to deliver long-term value to our shareholders," said Craig H. Muhlhauser, President and Chief Executive Officer of Exide Technologies. Restructuring Throughout fiscal year 2004, Exide continued implementation of its financial and operational restructuring initiatives. The Company successfully concluded its financial reorganization on May 5, 2004, emerging from Chapter 11 with a new capital structure. The key accomplishments of the financial reorganization included debt reduction of 70 percent, or approximately $1.3 billion, reduction of annual interest burden by approximately $70 million and new financing to support the needs of the business. In addition, the Company continues to streamline and simplify its global operations through a number of cost reduction, quality and productivity initiatives throughout the world. These initiatives involve the closure or consolidation of certain manufacturing and distribution facilities, reductions in salaried personnel, and further improvements in quality and productivity through EXCELL, the Company's lean supply chain process improvement initiative. |
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| Last Updated ( Wednesday, 30 June 2004 ) |
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